Do I have to have DBA insurance or is it optional?
If you meet the criteria for the government mandated categories of workers that need Defense Base Act insurance coverage then it is not optional. Generally speaking if you are a US employee or foreign national working on a US military base or under a US Government work contract on foreign soil then you will be required to obtain DBA insrance coverage. There are penalties for not getting DBA coverage in place if you qualify. For more information please visit our ‘who needs DBA insurance?‘ page and our ‘DBA Law & Penalties‘ page.
Is DBA insurance available for small contractors?
Yes, Defense Base Act insurance coverage is available for contractors and subcontractors of all sizes.
What are the benefits of DBA insurance?
DBA insurance covers disability benefits, medical benefits and death benefits when an injury or death occurs during the course of employment. For more information on DBA benefits please visit our ‘What does DBA insurance cover‘ page.
Must an employer acquire DBA insurance for foreign nationals?
Yes – nationality is not relevant under Defense Base Act insurance coverage, if the nature of your work requires DBA insurance it must be provided for all employees, both US citizens and foreign nationals.
What are the penalties for not obtaining DBA insurance?
Failure to obtain Defense Base Act insurance coverage when required to do so can result in a fine of $11,000 and imprisonment. For more information please visit our ‘DBA Law & Penalties‘ page.
What is a DBA Insurance waiver?
A Defense Base Act insurance waiver can be obtained for foreign/local nationals (meaning you don’t have to cover them under your DBA insurance) if you can obtain worker’s compensation insurance for the foreign nationals in accordance with ‘local’ law. However, if there is no ‘local’ law governing worker’s compensation then you can not obtain a waiver and the foreign/local nationals must be covered under your DBA insurance policy.
How are DBA insurance premiums calculated?
DBA insurance premiums are calculated in a very similar manner to US Domestic Workers Compensation, the following factors will play a role in determining your DBA insurance premium:
- number of employees
- payroll of employees
- nature of work being performed
- loss experience (claims history)
- security and safety precautions taken
- transportation and lodging of employees
Is there a minimum premium with DBA insurance? Why?
Yes – there is a minimum premium for Defense Base Act insurance due to the considerable upfront costs, overhead and administrative costs.